ClearGrid Raises $10M to Revolutionise MENA Debt Collection with AI-Driven Empathy

We've all had those awkward phone calls, haven't we? The ones involving harsh voices firmly nudging (or, let's be blunt, sometimes shoving) borrowers into action, as debt collectors chase repayments. It's an age-old problem here in the Middle East and North Africa, and it's frankly costing banks a fortune while leaving borrowers feeling desperate and irritated. Something's got to give—especially as regulations become stricter and the MENA region's burgeoning consumer lending market pushes past a staggering $500 billion.

Enter ClearGrid, a fintech startup that's just revealed itself after raising an impressive $10 million across two investment rounds—a pre-seed round co-led by Raed Ventures and Beco Capital, closely followed by a seed round led again by Raed alongside Nuwa Capital. Other noteworthy players backing ClearGrid include heavyweights such as Aramco's Waed Ventures, KBW Ventures, Shakara, 9yards Capital, BYLD, Endeavor, Protagonist, Eirad Holdings and Wamda. If that wasn't enough star power in one investment pool, some notable individual investors joined the fray too, like Justin Kan of Twitch fame and Kenneth Lin from Credit Karma.

ClearGrid's founders, Khalid Bin Bader Al Saud, Mohammed Al Zaben and Mohammed Khalili, know all too well the headaches and personal stress the current debt collection system can cause. They've been there, done that, and decided it's time to shake things up. Their big idea? Let's treat debt collection not as an aggressive knock on the door, but rather as an information puzzle needing to be solved through clever coordination and compassion. Quite sensibly, they're ditching those outdated strong-arm tactics in favour of data-driven empathy.

Co-founder Mohammed Al Zaben summed it up nicely, stating: "Collections should be an extension of good lending—not an afterthought." ClearGrid's AI-powered platform works by intelligently automating the entire collections process. From initial borrower engagement through to negotiation, every step gets smarter and more efective thanks to the platform, meaning lenders collect more efficiently, and borrowers experience less anxiety and frustration.

Since quietly launching operations last year, ClearGrid’s already made a striking difference in the UAE, working with leading fintechs and major banks. Just a year in, their UAE branch is profitable—a remarkable achievement given startups typically struggle to break even so quickly. Not one to rest on its laurels though, ClearGrid has set ambitious plans for market entry into Saudi Arabia this year.

Their results seem promising too. One major UAE bank reportedly boosted debt recovery rates by a healthy 30 per cent while actually reducing their costs by half. And a buy-now-pay-later (BNPL) provider has doubled their debt recoveries simply by implementing ClearGrid's early-stage automation. Turns out, borrowers are more than willing to engage constructively if they feel respected and understood—with flexible options, like interest relief and manageable repayment plans, becoming a key part of the conversation.

Founding partner at Raed Ventures Omar Majdouie is obviously enthusiastic about the project, noting ClearGrid's potential to modernise debt recovery across the region, not only streamlining lenders' operations but also significantly improving consumers' experience, ultimately creating a healthier and fairer financial landscape for everyone.

But ClearGrid’s ambitions don't just stop at debt collection. They're planning ahead with a broader vision, aiming to roll out a comprehensive SaaS platform featuring AI-driven early risk detection, alternative credit scoring and innovative debt management solutions. Basically, they want to build a financial infrastructure that isn't just about chasing late payments, but genuinely preventing debts from spiraling out of control in the first place.

ClearGrid’s Khalid Bin Bader Al Saud put it best, declaring: “Financial systems must evolve with the digital world. Debt resolution should be a bridge to stability, not a roadblock.” Certainly a refreshing perspective—one that many who've grown weary of traditional methods across MENA, as the team at Arageek often notes, might find extremely welcome.

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